Digital Dream Labs

Digital Dream Labs is building engaging educational games that kids actually want to play.

Its games teach key skills related to Science, Technology, Engineering, and Math. These topics, known collectively as “STEM,” are difficult to learn. And until now, there hasn’t been a single platform that can teach all of these subjects.

Digital Dream Labs is targeting the massive educational technology, or “EdTech” market. By 2020, this market is projected to reach $252 billion.

Within this market is a wide-open segment related to primary education — i.e., kindergarten to fifth grade. Here, students aren’t yet old enough to have the reading skills that would enable them to use the more advanced products that exist in the market.

The company has already achieved significant progress:

• It’s raised $1.6 million from notable investors including Alpha Lab, Innovation Works, and Carnegie Mellon University.

• It’s launched its product in more than 3,400 U.S. elementary schools, building a sales pipeline of $3.8 million.

• And it’s been recognized for its effectiveness and efficiency by the Bill & Melinda Gates Foundation.

STEM-related education is critical today. But many children don’t start engaging with STEM topics until later in school. By then, understanding the material is intimidating, and it’s often too late for students to adequately master these subjects.

Studies have shown that 70% of skills gaps that show up among high school students are the result of a lack of education during that student’s formative years — between kindergarten and second grade.

Yet when it comes to early childhood education, currently, there aren’t any solutions that engage young learners in STEM education in an age-appropriate, interesting way.

This is the challenge Digital Dream Labs set out to conquer.

Its first product, Puzzlets, is a hands-on learning system for pre-readers. This system uses toy puzzle pieces with RFID tags to control onscreen learning environments.

Students play various games, including ones like Cork the Volcano, which teaches logic, sequencing, and fine-motor skills through physical interaction and gameplay.

In addition to software games, the company’s platform can extend to other devices and applications, including robots, drones, and smart speakers (these last two are in development).

Digital Dream Labs has been profitable since 2017. Sales are expected to exceed $1 million in 2019, and $3 million in 2020.

To put its potential in context, if it could implement its products inside every U.S. classroom just for students ages 5 through 7, its revenues could reach $5 billion.

The company sells a suite of hardware and software products. The price for its starter pack, which includes a Bluetooth “Play Tray,” programmable game pieces, and storage pouches, is $99.99.

In addition to this pack, individual “game tiles” sell for around $40. Users can also download games for a fee. If the customer doesn’t want to purchase hardware, some content is available via downloads through a subscription. This fee is $10 per student per year.

The company achieves a 90% product margin for its download-only games, 73% margins on its Puzzlets add-on games, and 50% margins on the Puzzlet Play Tray hardware.

With funds raised, Digital Dream Labs will continue development of its first software program geared toward middle school students. This software-only game will be called “Monstrous Molecules” and will teach basic chemistry skills.

In 2020, the company will launch 3D Puzzlets, a buildable, real-world environment students can use to interact with its existing software.

Team Background

Bryan Gardiner - Lead Programmer

Before working for Digital Dream Labs, Bryan was a lead hardware engineer for AE Dreams, a consumer electronics company. Prior to that, he was an intern for Telcare, a medical device company.

He earned a Bachelor’s degree in Electrical and Computer Engineering from Carnegie Mellon University.

Jacob Hanchar - Founder & CEO

Jacob started Digital Dream Labs after extensive research into neurological science.

He earned Ph.Ds in Medical Pharmacology and Neuroscience from UCLA, then spent four years as a graduate researcher.

In addition to his background in these areas, Jacob is also a seasoned entrepreneur. He founded River Hill Coal Company, a manufacturing company in steel production. He also became the owner of Klavon’s Ice Cream Parlor, a small shop in Pittsburgh, Pennsylvania.

Along with his Ph.Ds, he earned an MBA from Carnegie Mellon University.

Jordan King - Marketing Director

Before joining the team at Digital Dream Labs, Jordan was a content creator for YouTube.

Prior to that, he was a marketing intern with Ripen eCommerce, an Internet services company focused on helping businesses grow their brands.

For two years, he was a marketing coordinator at Carnegie Mellon University, where he earned a Bachelor’s degree in Business Administration. He also earned an MBA from the University of Pittsburgh.

An Nguyen - Lead Artist

An is spearheading the design of Digital Dream Labs’ educational games.

She spent two months as a freelance storyboard artist, and worked as a character designer for Planion Animation Studio.

In addition, she designed several short films and projects while attending the Savannah College of Art and Design. She earned a Bachelor’s degree in Animation and Interactive Technology.

Co-Investors

AlphaLab

A software accelerator program helping early-stage tech companies grow. Portfolio includes Nowait and BlackLocus.

Innovation Works

A VC firm investing in Pennsylvania-based technology companies.